Adjacency Externalities and Forest Fire Prevention
AbstractThis paper models landowner behavior on timberland subject to damage by fire. We examine how management decisions by adjacent landowners yield outcomes that diverge from the social optimum, and consider how this divergence depends on landowner preferences and information. We conduct a numerical simulation in which landowners interact through the effects of their fire prevention activities on a common risk of fire. The results reveal significant social inefficiencies related to externalities associated with private fuel treatment decisions. We consider a policy for aligning social and private decisions by requiring landowners to share the government’s cost of fire suppression.
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Bibliographic InfoArticle provided by University of Wisconsin Press in its journal Land Economics.
Volume (Year): 85 (2009)
Issue (Month): 1 ()
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Web page: http://le.uwpress.org/
Find related papers by JEL classification:
- Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
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- Prante, Tyler & Little, Joseph M. & Jones, Michael L. & McKee, Michael & Berrens, Robert P., 2011.
"Inducing private wildfire risk mitigation: Experimental investigation of measures on adjacent public lands,"
Journal of Forest Economics,
Elsevier, vol. 17(4), pages 415-431.
- Tyler Prante & Joseph M. Little & Michael L. Jones & Michael McKee & Robert P. Berrens, 2010. "Inducing Private Wildfire Risk Mitigation: Experimental Investigation of Measures on Adjacent Public Lands," Working Papers 10-10, Department of Economics, Appalachian State University.
- Busby, Gwenlyn & Amacher, Gregory S. & Haight, Robert G., 2013. "The social costs of homeowner decisions in fire-prone communities: Information, insurance, and amenities," Ecological Economics, Elsevier, vol. 92(C), pages 104-113.
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